Baumann said: "It is always of value to have the host nation playing in the Olympic basketball tournament and we have no doubt the British public will support the competition.
"In addition, we have always said that Team GB needs to be competitive and we have been impressed by both the performance of the Team GB men and women in qualifying for next year's EuroBasket.
"However, our concern is the long-term development of basketball in Great Britain and what the legacy will be for the game once the 2012 Olympics in London are over.
"This is a great opportunity for basketball to develop in the country and we want to ensure there are strong roots in place which will enable the sport to grow and flourish in the same way it has elsewhere in Europe. We want to see Great Britain become a basketball nation after the games.
"I will be writing to the British Basketball Federation setting out the specific areas where we would like to see progress and if these are satisfied then FIBA sees no reason why Team GB cannot compete in 2012."
Bill McInnes OBE (British Basketball Federation Chairman):
"Our success on the court this year has proved that British basketball teams deserve to be at the top table of international competition, however to stay there the challenge of ensuring a stable and effective structure off the court is also essential.
"The legacy from competing well in 2012 was always the bigger prize of a raised profile for all basketball activity in Britain and all that that would deliver for the sport.
"The British Basketball Federation and its three member Associations of England, Scotland, and Wales are confident that the consultation on the future of British basketball, which is presently taking place, will deliver a strategy which will convince the FIBA Central Board of the sport's commitment to becoming a serious player, both on and off the court."
